CEO Sees Profit, IPO for Virgin America

Discount airline Virgin America said it continued to rack up losses in the past two quarters, but a deal to restructure its balance sheet and raise fresh capital should help put it on course for profit later this year and bring it closer to an initial public offering, according to Chief Executive David Cush.

Virgin America, part-owned by billionaire Richard Branson's Virgin Group Ltd., has turned a quarterly profit just once since it started flying in August 2007. But it has accumulated more than $645 million in losses,...